Thursday, November 13, 2008

Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

French President Nicolas Sarkozy said on Thursday ahead of the G20 meeting of world leaders:

"I am leaving tomorrow for Washington to explain that the dollar cannot claim to be the only currency in the world..., that what was true in 1945 can no longer be true today".

There have been many previous indications that the dollar would not remain the world's reserve currency for long. But this is a dramatic statement by a close American ally.

Reading between the lines, I am guessing that Sarkozy is pushing for a shift from the dollar to a basket of currencies as a world reserve standard, instead of a change to a single currency such as the Euro or the Yuan.

But we'll have to wait and see what Sarkozy is really advocating.

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1 comment:

  1. phoebusNovember 14, 2008 at 7:21 AM

    For the 'internationalists' any center point of currency gravity suits. Add up that article you wrote about Paulson and return to high rick banking business and the constant collapse/merge mechanism will bring this shifting of point of currency gravity a cycle or two away.

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